Empirical Generalizations of Demand and Supply Dynamics for Movies

Abstract

High financial risks in production and marketing, the hedonic nature of products, and the global cultural relevance of movies have encouraged a substantial number of researchers to analyze the success drivers of movies. This research provides empirical generalizations in managing the supply and demand of motion pictures. Prior empirical research either ignored the endogeneity of box office and screen allocation or was based on selective samples, ignoring the large amount of smaller movies released to the market. Using two large and unique samples of all movies released in two major movie markets, the US (2000-2010; n=2,098) and Germany (2002-2010; n=1,360), we extend prior research and present empirical generalizations and new fields of research.

Keywords: Generalizations, Movie Industry, Screens Allocation, Endogeneity

JEL Classification: M31